By Xavier Sabastian, Way.com High tariffs — they affect not only governments and corporations but also consumers right where it hurts — their wallets. Because high tariffs raise the cost of motor parts, maintenance, and even insurance claims, the auto industry is particularly affected. High tari ffs have the potential to cause everyday spending to soar, regardless of whether you own a car, have insurance, or occasionally rent one. However, what are the precise effects of these increased tariffs? More significantly, how can you protect your money from needless spending? Way.com examines how the automotive business is affected by high tariffs in various ways and what you can do to avoid higher costs. FabrikaSimf // Shutterstock Car Repairs: The First to Feel the Heat A car is a necessity rather than a luxury for many individuals. Repair costs, however, start to rise as tariffs raise the price of imported parts. Why Is the Cost of Repairs Increasing? A lot of auto parts are produced abroad. The cost of these components increases when import duties rise. As a result, auto repair firms charge their clients more. Increased cost of replacement parts: If a fender that used to cost $200 now costs $300 because of tariffs, the additional cost eventually reaches you. Limited availability: Mechanics may have to find more costly domestic alternatives or wait longer for items to arrive if fewer parts are imported because of financial constraints. Increased labor costs: Mechanics may bill extra for their time and skills because they now have to deal with more expensive parts and delays. Car owners are instantly affected by the price increase, as a basic bumper replacement that used to cost $800 might now cost up to $1,000. Related Articles Business | Spring Breakers beware: Thieves are sending your stolen phone to China. Here’s how you can prevent it Business | Small Business Administration to reorganize, cut about 2,700 jobs Business | Johnson & Johnson plans $55 billion in US investments over the next four years Business | Wall Street closes higher, snapping a 4-week losing streak Business | Amazon ends privacy feature that let Echo users opt out of sending recordings to company Car Parts: A Supply Chain Nightmare The cost of car components isn’t rising — it’s getting volatile. Supply chain breakdowns leave customers with both shortages and higher prices. Which Car Components Are Hit the Worst? Some of the most typically impacted pieces are: Brake pads and rotors: Most are produced in China, Mexico, and Europe. Engines and transmissions: Big, costly pieces that are much more expensive under high tariffs. Electronic parts: Vehicles depend on imported semiconductors and chips, which are extremely vulnerable to trade barriers. New vs. Used Parts: A Difficult Decision As new car parts become increasingly costly, most car owners opt for used or aftermarket parts. Used parts, however, might not always be accessible, and aftermarket parts might not be of the same quality. Insurance Claims: Higher Payouts, Higher Premiums When repairs become more costly, insurance companies notice. As they pay out higher amounts on claims, they necessarily raise premiums. How insurance companies respond  Increased premiums: To compensate for higher repair costs, insurers increase policy premiums. Lower payments: Insurers can attempt to save money by making lower payments for claims. Increased claim processing times: Insurers, as they deal with increased costs, might take longer to approve claims in order to re-evaluate costs. The outcome? Vehicle owners not only pay more for repairs but also for the very insurance policies that are supposed to cover them. Rental Cars: The Hidden Cost Surge Whether you require a rental following an accident or for a weekend escape, you may be surprised by the inflated costs. The effects of exorbitant tariffs trickle down to rental companies, compelling them to revise their pricing structures. Why rental car prices are on the increase  Increased vehicle acquisition cost: Car rental companies buy cars in bulk and mostly rely on imports. More costly repairs and parts: Costlier repairs and replacement parts make keeping rental fleets more costly. Disruption of supply chains: With less cars available and delays in production, more demand drives prices even higher. A rental that used to cost $50 a day can now be as much as $75 a day, making short-term rentals costly. Impact on the Average Car Owner All these add up to make the perfect storm for the average drivers. Let us dissect what that means to the average car owner: Brake Pad Replacement Previous Cost (Estimate): $250 Post-Tariff Cost (Estimate): $350+ Insurance Premiums (Annual) Previous Cost (Estimate): $1,200 Post-Tariff Cost (Estimate): $1,500+ Car Rental (Per Day) Previous Cost (Estimate): $50 Post-Tariff Cost (Estimate): $75+ Bumper Repair Previous Cost (Estimate): $800 Post-Tariff Cost (Estimate): $1000+ To the person who gets hit with various car expenses per year, it can equate to another $3,000 or more on top of expenditures every year. How Do You Protect Yourself? Although you cannot control trade agreements or government policies, you can take certain steps to reduce the financial burden. Compare repair quotes Various stores might have varied sourcing strategies for automobile parts. Requesting estimates from multiple places can lead to the best bargain. Use alternative parts Refurbished and aftermarket parts can be an inexpensive substitute for costly original equipment manufacturer, or OEM, parts. Reconsider your insurance policy Comparing auto insurance rates and shopping around for insurance carriers can help you get a reduced premium even as prices increase. Employ ride-sharing or public transit When car rental is becoming too expensive, employing public transport or ride-sharing for short-term requirements can prevent you from spending extra money. Utilize savings apps for transport One of the best methods to counteract increasing transportation expenses is intelligent financial planning. Certain apps enable users to save money on everything from parking and insurance to gas and maintenance. By streamlining daily expenses, you may save as much as $3,000 annually, making a concrete impact on your budget. Final Thoughts High tariffs trigger a ripple effect that touches just about everything, from car maintenance to insurance fees and rental expenses. While you may feel their pinch in the form of sticker shock, becoming proactive and identifying intelligent savings methods can keep the costs in line. By becoming proactive — perhaps by comparing the cost of auto insurance, browsing for substitute automobile parts, or employing money-related tools—you are able to shield your finances while keeping your vehicle expenses in line. This story was produced by Way.com and reviewed and distributed by Stacker. ...read more read less